Sample 19:   Sample Claim Refusal
    America First Insurance
945 Cloverdale    ·    Normal, Illinois 61761-7443
309-555-9696    ·    http://www.afi.com
      
    11 June 20xx
      
      
      
    Mr. Roberto Monteveccio
1501 Newell Road
Palo Alto, CA 94303
Simplified Letter Form--for more information, see the Delmar Reference Manual.   Insurance Rates
Pace by saying something with which the reader will agree.   Yes, Mr. Monteveccio, we do make money on the policies carried by good drivers like your father, and your father should be proud of the fact that he has not had an accident in 25 years.
     
Provide a full explanation for your decision, showing that the refusal is based on impersonal evidence.   Insurance companies keep careful statistics on different kinds of cars and drivers. These statistics are the basis for determining insurance rates. Drivers with very few or no accidents and violations, like your father, receive the lowest rates. Because unmarried drivers under 25 account for the highest frequency of accidents of any age group, they are charged higher rates than any other age group. Also, the Cobra-Jet that you drive has had one of the highest frequency of accidents and is charged a higher rate than a car like your father's.
      
Avoid accusing the reader, and use positive language to subordinate the negative aspect of the message. When possible, offer positive alternatives.   The driving record of the individual driver is also one of the most important factors in computing the premium charged. The premium notice you received is correct for your age, car, and driving record. One way to lower your premium would be to drop the collision coverage on your car. Because of California's No-Fault law, however, should you have an accident--even if it were not your fault--you would have to pay for the damage to your car. You could also lower your insurance premium by trading the Cobra-Jet in on a compact car with a smaller engine.
     
Your closing should be positive and forward-looking.   I am happy to have your father as a policyholder, and I'm sure that you will be just as good a driver as he is. As you grow older and accumulate a few years of accident-free driving, your insurance premiums will drop accordingly. Please give me a call to discuss the ways different vehicle types would influence your insurance premiums and other possible ways to reduce your rates.
     
Simplified Letter Form omits the salutation and the complimentary close.    
    Cal Davis
  
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